Oil prices continued their downward trend on Monday following the signing of a ceasefire agreement between the United States and Iran to end hostilities in the Middle East and reopen the Strait of Hormuz.
According to Oilprice.com, Brent crude, the global benchmark, dropped from $87 per barrel on Sunday to $83 per barrel on Monday. The US and Iran said they reached an agreement on Sunday to end the war, a development that further pushed down oil prices.
On Monday that petrol could drop to as low as N900 per litre in the coming days if the peace deal between the United States and Iran materialised.
With US President Donald Trump announcing the signing of the peace deal and a partial reopening of the Strait of Hormuz, oil prices fell further, fuelling speculation of an imminent fuel price reduction in the coming days should the crisis fully de-escalate.
Recall that crude oil, which traded at over $120 per barrel in April, had already fallen to about $87 per barrel as of Sunday and further declined to $83 on Monday.
Crude oil, the major feedstock for fuel production, rose from below $70 per barrel after the US-Iran conflict began on February 28. During the more than three months of hostilities, crude traded above $100 and at some points exceeded $120 per barrel, leading to a sharp increase in fuel prices globally. It is expected that this trend would now reverse following the latest developments.
According to Reuters, a US official said the memorandum of understanding was signed by Trump, Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Qalibaf.
